Prestine beaches and perfect weather have made Florida the ideal getaway for many years, that was until Covid-19 turned one of the most desirable vacation destinations into a ghostown as a result of lockdowns, and then a virus spreading hotspot when vacationing resumed. Going into the second year of the novel Coronavirus, the state of Florida has continued to aid in the spread of the deadly disease as vacationers gamble their luck on enjoying the beach, but it’s not only the tourism industry that stands to be affected by COVID, the real estate market is set to take a swing. As the seller’s market brought on by the Coronavirus begins to melt away, many will jump into the market while prices are high, further damaging the low inventory market that has caused prices to spike. Furthermore, the ending moratoriums on evictions and foreclosures stand to misplace many as the scarce market stands to pick up inventory, ending the feeding frenzy of real estate that has been evident in the past year.
Aside from the success the Florida Real estate market has seen due to low inventory brought on by the Coronavirus, the Florida Real Estate Market has always been a hot one. The state of Florida is enticing to many all across the United States, especially those in the north east. Retirees flock to Florida to avoid the cold winters of the north as many make it their home, others own real estate in Florida as a vacation spot. The lack of state income taxes also makes the state enticing to possible residents. Florida was already an attractive state to reside in, but once Coronavirus made its mark on high populated cities such as New York, the sunny state of Florida seemed like a good alternative.
Real Estate professionals that took a break during the height of the pandemic to avoid the virus will find themselves returning to a market like no other. The real estate market was on an upward trend since the last market reset in the late 2000s. Some even predicted the market would reset once more, as that typically happens every decade; instead the opposite occurred. Not only did COVID-19 preserve the real estate market, it maximized the market. Homes were soon flying off the shelves as inventory dried up and the prices increased. The summer of 2021 saw much of the country reopening as the vaccines were being rolled out, as a result much of the country went back to somewhat normal. Soon evidence came forth that vaccinated individuals could still contract the virus. According to an article published by the “Miami Herald” on September 8th, 13,774 more Covid-19 cases were added to the high number of those who’d contracted the virus. As the winter of 2021 nears and Covid-19 cases continue to increase, many wonder what the future holds for the real estate market.
Experts predict the real estate market will soon resemble the economy during Covid instead of the strong seller’s market it once was. According to an article on Forbes.com that cited a statement from the National Association of Realtors, unsold homes rose 3.3% to 1.25 million from May to June of 2021. The slowing of home sales during one of the hottest months of the real estate market proves the rock hard market is soon to falter. It has been no secret that mortgages were held in limbo as unemployed individuals from Covid were unable to make payments and unemployed renters were not held liable for rent. Banks and landlords were essentially paused when it came to collecting their debts during the Coronavirus. When a portion of the economy is put on hold, prosperity usually does not follow.
Those who own second homes in Florida may be in a difficult position as the longterms affects of the Coronavirus begin to hamper the entire economy. Fortunately, there are still options for those who wish to sell their home fast for cash during these uncertain times. Helpful Homes is a real estate acquisitions company that operates in Southern Florida and helps those who find themselves in any unwanted housing situation, whether that is foreclosure, inherited properties, or anything in between. Helpful Homes works with market experts to wisely gauge the market and advise their clients to take steps that benefit them when it comes to discarding their problematic properties. Florida is a beautiful state full of pristine real estate, but as the market begins to take a turn, homeowners must be prepared to brace themselves as the longterm affects of the novel Coronavirus begin to trickle down to the real estate market.